The Political Disaster That Is California - David Friedberg
In a Nutshell
California's prosperity is collapsing due to unsustainable spending on failed programs like the $30B bullet train fiasco, $220M homeless initiative housing just six people, and a $600B-$1T public pension shortfall, driving an exodus of tech leaders (87% planning to leave). The new billionaire wealth tax—1% annually on net worth over $1B—sets a dangerous precedent for eroding private property rights, potentially expanding to millionaires and beyond via annual asset assessments, mirroring historical income tax creep from 1% to 53%. This risks socialism where 51% vote to seize from 49%, threatening U.S. innovation amid global AI competition from China, favoring dystopian control over optimistic abundance.
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California's core engine of prosperity since the 1800s is unraveling. A third of people in group chats have already left. An informal survey of core tech leaders showed 87% plan to leave. Emerging tech CEOs of growing startups are looking to leave; one company planning to move from Southern to Northern California is now moving to Nevada due to worries about what's next. California is in a fundamental sinkhole.
Politicians promise things people don't have to get elected; no politician in the last 100 years has been elected by saying they'll take things away or do less.
California created the highest tax rate in the country from Silicon Valley success, income, and capital gains to fund nonsense like the bullet train to nowhere ($30 billion spent, six CEOs fired or one arrested). A homeless program spent $220 million to get six homeless people out of poverty. Rural broadband spent the same amount as could have given every American citizen Starlink.
Public pensions for public employees have guarantees over the past 12-15 years that the state cannot afford, with an estimated $600 billion to $1 trillion shortfall. Unfunded promises include healthcare for union workers. This creates massive liability problems, leading to chaos with people leaving.
The billionaire tax from SEIU union taxes 5% of net worth over $1 billion, giving the legislature ability to change thresholds and amounts in the future (e.g., 1% on billionaires every year).
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